The bloc currency is now picking up pace towards the key resistance at 1.2900 on Tuesday, after Producer Prices in Germany rose less than expected during the month of April.
Disinflation continues to hover over the euro area, as Producer Prices in the German economy increased 0.1% over the last twelve months, missing forecasts at 0.2% and lower than March’s 0.4%. MoM prices contracted 0.2%, below expectations at -0.1%.
Next on tap in the bloc will be the Spanish auction of 3m and 9m Letras, expected to confirm the recent downside in yields.
As of writing, the cross is up 0.10% at 1.2896 with the next resistance at 1.2930 (high May 16) ahead of 1.2943 (high May 15).
On the flip side, a breach of 1.2796 (low May 17) would expose 1.2740 (2013 low Apr.4) and finally the psychological mark at 1.2700. – FXstreet.com (Barcelona)